| FCC Receives Comments on
Intercarrier Compensation Regime |
8/21. August 21 was the deadline to submit comments to the
FCC in response to its Notice of Proposed Rulemaking (NPRM)
regarding the concept of a unified intercarrier compensation
regime. Intercarrier compensation includes both reciprocal
compensation and access charges. The FCC specifically sought
comments on alternative approaches, such as "bill and
keep." The FCC published in its web site 34 comments
received on or before August 21. Several of these comments are
summarized below. Reply comments are due by October 5, 2001.
The FCC stated in its NPRM that "we begin a fundamental
re-examination of all currently regulated forms of
intercarrier compensation. We intend to test the concept of a
unified regime for the flows of payments among
telecommunications carriers that result from the
interconnection of telecommunications networks under current
systems of regulation. Specifically, we seek comment on the
feasibility of a bill-and-keep approach for such a unified
regime. We also seek alternative comment on modifications to
existing intercarrier compensation regimes. In sum, we seek to
move forward from the transitional intercarrier compensation
regimes to a more permanent regime that consummates the
pro-competitive vision of the Telecommunications Act of 1996
..." See, NPRM
[PDF], which was adopted on April 18, 2001, and released to
the public on April 27. See also, notice
in Federal Register, May 23, 2001, Vol. 66, No. 100, at Pages
28410 - 28418, regarding this NPRM.
BellSouth, a large
Bell company, submitted a comment
[PDF] in which it endorsed bill and keep. In contrast, the National Telephone Cooperative
Association (NTCA), which represents small rural phone
companies, submitted a comment
[PDF] in which it said the "NPRM is premature and should
be set aside". It wrote that bill and keep would raise
rates in rural areas, and impact universal service, among
other things. It also raised several legal obstacles to the
NPRM. Other comments from rural telephone interests expressed
similar objections to bill and keep.
Sprint submitted a comment
in which it which it gave qualified support for a bill and
keep regime. It wrote that "a bill and keep intercarrier
compensation regime offers substantial public interest
benefits, and that concerns raised in the NPRM regarding the
potential economic inefficiencies associated with a bill and
keep plan are exaggerated ... . We further believe that the
Commission has legal authority to adopt a bill and keep regime
... . Therefore, Sprint supports the prompt implementation of
bill and keep as regards local traffic (both CMRS and wireline)
and interconnected local calls to ISPs. However, it is
premature to adopt a bill and keep regime for long distance
access traffic at this time ..."
The Personal Communications
Industry Association (PCIA) submitted a comment
[PDF] in which it argued that the FCC "should not adopt
mandatory bill and keep for paging-LEC interconnection, but
rather should implement bill-and-keep, if at all, as another
option for interconnection for paging-LEC
interconnection."
The Information Technology
Association of American (ITAA) submitted a comment
[PDF] to urge the FCC "to make clear that it does not
intent to re-visit the question of whether ESPs
should continue to be allowed to obtain service from local
exchange carriers ("LECs") on the same terms as
other business users, rather than being subject to carrier
access charges." The ITAA also urged the FCC "not to
adopt any intercarrier compensation regime that would treat
ISP-bound traffic in a different manner than local voice
traffic."
Global Crossing
submitted a comment
[PDF] which focused on packet voice traffic. It wants the FCC
to "declare carriers rights to route packetized voice
traffic through existing and future, private and public,
peering and transit arrangements", "Prohibit any
carrier from refusing to accept packetized voice traffic
through existing and future, private and public, peering and
transit arrangements", "Allow carriers to negotiate
the termination of packetized voice traffic through peering
and transit arrangements without regard to the traditional
access charge and reciprocal compensation regimes", and
"Prohibit carriers from imposing usage- sensitive charges
unless mutually agreed to by the parties."
For further background on intercarrier compensation, and bill
and keep proposals, see two working papers published by the
FCC's Office of Plans and
Policy. One is Bill
and Keep at the Central Office as the Efficient
Interconnection Regime [PDF], by Patrick DeGraba. It
proposes "a unified approach to interconnection pricing
called Central Office Bill and Keep ("COBAK"), which
provides that a called party's carrier cannot charge an
interconnecting carrier to terminate a call. Rather, each
carrier recovers the cost of the loop and local switch from
its own end-user customers). The second is A
Competitively Neutral Approach to Network Interconnection
[PDF], by Jay Atkinson and Christopher Barnekov. It proposes
"a default bill and keep solution under which carriers
split equally those costs that are solely incremental to
interconnection, and recover all remaining costs from their
own customers." |
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| GAO Issues Report on Use of
DOD Spectrum for 3G |
8/21. The GAO
released a report
[PDF] titled "Defense Spectrum Management: More Analysis
Needed to Support Spectrum Use Decisions for the 1755-1850 MHz
Band." It concluded that studies already conducted by the
NTIA and DOD, and by
industry, are inadequate, and that more study is needed before
spectrum allocation decisions can be made.
The 1755 - 1850 MHz band, which is currently used by the
Department of Defense (DOD) for satellite systems, mobile
tactical communications, precision guided munitions, combat
training, and other systems, is one of several bands
identified for possible reallocation for use by Third
Generation (3G) wireless systems. 3G is intended to bring
broadband Internet access to mobile devices, among other
things. Incumbent users of these identified spectrum bands,
including the DOD, oppose reallocation of their spectrum for
3G services.
The DOD concluded that vacating the 1755 - 1850 MHz band could
not be accomplished for satellite systems until at least 2017,
and for most other systems until at least 2010. Its report
added that the DOD could face significant operational
restrictions in any frequency sharing situation. In addition,
it stated that operationally suitable spectrum for
reallocation of DOD systems may not be available. The NTIA's
report in March 2001 incorporated the DOD's results and
concluded that unrestricted sharing of the 1755 - 1850 MHz
band is not feasible and any other sharing option would
require considerable coordination. See, NTIA
report [1.8 MB in PDF], the companion assessment
by the DOD [12 MB in PDF], and a U.S.
Air Force case study [.3 MB in PDF]. See, also, the NTIA's
web page on 3G systems.
The GAO report concluded that "Spectrum decisions based
on either the DOD or the industry study of the 1755 to 1850
MHz band would be premature at this time. Neither study
contains adequate information to make reallocation decisions.
In particular, we found that neither the DOD model nor the
industry model is mature enough to calculate spectrum
interference to satellites, and, therefore, cannot support a
near-term decision."
The GAO recommended that "Before making reallocation
decisions with a significant impact on national security and
the economic welfare of the nation, the federal government
should approach the alternatives with knowledge gained from a
sound and complete analysis." The report made many
recommendations for further areas of study.
The report was prepared at the request of Sen. James Inhofe (R-OK),
the ranking Republican on the Senate Armed
Services Committee's Subcommittee on Readiness and
Management Support. |
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|
| 2nd Circuit Reverses in
Goldberg v. Cablevision |
| 8/16. The U.S.
Court of Appeals (2ndCir) issued its opinion
in Goldberg
v. Cablevision, a case regarding cable public
access channels. Cablevision is a franchised cable TV provider
in Oyster Bay, New York. Cablevision's franchise agreement
with the town requires it to maintain two public, educational,
and governmental (PEG) access channels. Goldberg, a resident
of Oyster Bay, offered a program to Cablevision for
cablecasting pursuant to its PEG obligation. The program also
included an advertisement for sales of copies of the program.
Cablevision refused. Goldberg filed a complaint in U.S.
District Court (EDNY)
against Cablevision alleging violation of both New York law,
and the Communications Act of 1934. The District Court granted
summary judgment to Cablevision on the grounds that the
program was commercial. The Appeals Court vacated and
remanded. |
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| FCC Seeks Comments on SBC
Long Distance Requests |
| 8/21. The FCC requested public comment on SBC's Section 271 application
to provide interLATA service in the states of Arkansas and
Missouri. The deadline to file comments is September 10, 2001.
Reply comments are due by October 4. The deadline for the
Department of Justice Evaluation is September 24. (CC Docket
No. 01-194.) See, FCC
notice. |
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| NextWave Obtains Financing
from UBS Warburg |
8/21. NextWave Telecom
announced that "UBS
Warburg has committed to provide the company with $2.5
billion in debt financing to fund the construction of its
nationwide 3G wireless network. UBS Warburg has also been
engaged by NextWave to serve as the company's financial
advisor and will assist the company in consummating its plan
of reorganization." See, NextWave
release.
NextWave obtained spectrum licenses at FCC auctions in 1996,
under an installment plan, thus creating a debtor creditor
relationship between NextWave and the FCC. NextWave did not
make payments, and filed a Chapter 11 bankruptcy petition. The
FCC cancelled the licenses. The U.S. Court of Appeals (DCCir)
ruled in its June 22, 2001, opinion
that the FCC is prevented from canceling the spectrum licenses
by § 525
of the Bankruptcy Code. The FCC has indicated that it may
petition the Supreme Court for writ of certiorari. NextWave
filed a plan of reorganization with the bankruptcy court on
August 6. |
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|
| CD Sales Drop as Consumers
Get Music On Line |
| 8/20. The Recording Industry
Association of America (RIAA) stated that number of full
length CDs sold during the first half of 2001 dropped 5.3%
from the same period last year. Hillary Rosen, P/CEO of the
RIAA stated in the same release
that "more consumers are looking to get music on-line and
are experimenting with a number of approaches, including
legitimate subscription services." She added that
"Many in the music community are concerned about the
continued use of CD-Rs (compact disc recordables) and we
believe this issue deserves further analysis. A preliminary
survey of tech savvy online music enthusiasts recently
conducted for the RIAA showed that nearly one out of two
consumers surveyed downloaded in the past month and nearly 70
percent burned the music they downloaded. All of this activity
continues to show the passion of the consumer for music and
the need for both legal protection and legitimate
alternatives." |
|
|
| FTC Sues Web Based Quacks |
| 8/20. The FTC filed a complaint
in U.S. District Court (CDCal)
against Liverite Products Inc., several of its principals, and
others, alleging violation of the Federal Trade Commission Act
(FTCA). Defendants advertised and sold an alleged liver
treatment through web sites, and by other means. Defendants
made unsubstantiated claims about their treatment in violation
of Section 5(a) of the FTCA, 15 U.S.C.
§ 45(a), which prohibits unfair or deceptive acts or
practices in or affecting commerce. The FTC and defendants
simultaneously filed a stipulated
final order which requires defendants to pay $60,000 in
redress, and enjoins the defendants from making false claims.
See also, FTC release. |
|
|
| DC Circuit Affirms in
Global Crossing v. FCC |
| 8/21. The U.S.
Court of Appeals (DCCir) issued its opinion
in Global Crossing v. FCC.
Global Crossing
petitioned for review of an order of the FCC requiring Global Crossing
to pay Verizon compensation for payphone calls originating
from Verizon payphones and routed over Global Crossing's
network. The Court of Appeals denied the petition for review. |
|
|
| GAO Releases Report on
L&E Cases Under NAFTA |
| 8/21. The GAO
released a report
[PDF] titled "North American Free Trade Agreement: U.S.
Experience With Environment, Labor, and Investment Dispute
Settlement Cases." |
|
|
| Ashcroft Picks Wainstein
for EOUSA |
| 8/20. Attorney General John Ashcroft named Ken Wainstein
as Director of the Executive
Office for United States Attorneys (EOUSA) at the
Department of Justice. The EOUSA provides administrative
support to the 94 U.S. Attorneys' offices. Wainstein has
previously worked as interim U.S. Attorney for the District of
Columbia, Principal Assistant U.S. Attorney, Deputy Chief of
the Superior Court Division, and Deputy Chief of the Homicide
Section. See, DOJ
release. |
|
|
| Verizon Wants Regulatory
Relief for Bells |
| 8/21. Tom Tauke gave a speech
titled "Delaying the Last Mile" at a Progress and Freedom Foundation
conference in Aspen, Colorado. He advocated changes in the
regulatory environment in which the regional Bell monopolies
operate. Tauke is SVP for Public Policy and External Affairs
at Verizon. |
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| Wednesday, August 22 |
| Deadline to submit comments to the Copyright Office (CO)
in response to its notice
of proposed rule making regarding rates and terms for the
digital performance of sound recordings. The CO requests
comment on proposed regulations that will govern the RIAA
collective when it functions as the designated agent receiving
royalty payments and statements of accounts from nonexempt,
subscription digital transmission services which make digital
transmissions of sound recordings under the provisions of Section
114 of the Copyright Act. See, Federal Register, July 23,
2001, Vol. 66, No. 141, at Pages 38226 - 38229. |
|
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| New Documents |
GAO:
report
re reallocation of DOD spectrum for 3G, 8/21 (PDF, GAO).
USCA:
opinion
in Goldberg v. Cablevision, 8/16 (HTML, USCA).
USCA:
opinion
in Global Crossing v. FCC, 8/21 (HTML, USCA).
FTC:
complaint
and stipulated
final order re web based deceptive liver treatment, 8/20
(HTML, FTC). |
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